Warrants and Derivative Liabilities

9 Months Ended

Sep. 30, 2021

Warrants and Rights Note Disclosure [Abstract]

11.	Warrants and Derivative Liabilities

The following assumptions were used to determine the fair value of the warrants and derivative liabilities as of September 30, 2021 and December 31, 2020:


	As of September 30, 2021		As of December 31, 2020
Stock price	$	—	$	7.56
Exercise price	$	—	$	0.01
Risk-free interest rate		—		0.09%
Expected volatility		—		64.0%
Time to maturity (in years)		—		0.63

As of December 31, 2020, the fair value of the warrants and derivative liabilities was $58,100. In connection with the Company’s IPO, all the outstanding warrants were exercised by holders of those warrants and redeemable convertible preferred stock were converted to Class A common stock of the Company. The derivative liability, that represented the conversion feature of certain redeemable convertible preferred stock has been settled in the additional paid in capital.

For the three months ended September 30, 2020, the Company recognized an expense of $9,700, related to the changes in the fair value of warrants and derivative liabilities. There was no such expense in the three months ended September 30, 2021 due to the extinguishment of the warrants and derivative liability in connection with the Company’s IPO during Q2 2021. For the nine months ended September 30, 2021 and 2020, the Company recognized an expense related to changes in the fair value of such warrants and derivative liabilities of $5,000 and $16,400, respectively.